SHAHEEN: WELLPOINT’S NEW HAMPSHIRE RATE HIKES ARE WHY WE NEED REFORM NOW

February 24, 2010

(Washington,
D.C.)-U.S. Senator Jeanne Shaheen today called on WellPoint CEO Angela
Braly to explain the increase in New Hampshire health insurance rates despite
the company's substantial profits. According to a report released today by the
Center for American Progress, WellPoint, under the banner of Anthem Blue Cross
Blue Shield, intends to increase individual insurance
rates in New Hampshire by 12 percent to 13 percent and has already increased
premiums in the small group market by 17 percent. Meanwhile, the company
posted a 700 percent increase in profits in the fourth quarter of 2009 compared
to the same time period the previous year.

"I imagine your customers would be shocked to
learn that while you are raising insurance rates on working families and small
businesses during already tough economic times, you are posting enormous
profits," said Shaheen in the letter. "Raising insurance rates on families and
small businesses owners in this difficult economy to increase your already
substantial profit margin is indefensible."

The full letter to Braly follows:

February 24, 2010

Angela Braly

President and CEO

WellPoint Inc.

120 Monument Circle

Indianapolis, IN 46204

Dear Ms. Braly,

I was distressed to read a report by the Center for
American Progress today revealing that WellPoint expects to increase health
insurance rates in New Hampshire at a time when the company is reporting
billions of dollars in profits. In fact, WellPoint posted a 700 percent
increase in profits in the fourth quarter of 2009 compared to the same time
period the previous year.

The report states that individual insurance rates in New
Hampshire are expected to increase between 12 percent and 13 percent, and that
premiums for the small group market were already increased by 17 percent in
2009. Year after year, families and small businesses across New Hampshire have
faced increasing premiums, in some cases causing bankruptcy and job loss. The
people of New Hampshire cannot continue to bear the burden of these rate
increases.

I imagine your customers would be shocked to learn that
while you are raising insurance rates on working families and small businesses
during already tough economic times, you are posting enormous profits. Reports
show that your company made a $4.7 billion profit in 2009. Raising insurance
rates on families and small businesses owners in this difficult economy to
increase your already substantial profit margin is indefensible.

Every single day I hear from people in New Hampshire about
the crippling cost of health insurance. These people are desperate for help. As
you know, New Hampshire already has some of the highest insurance rates of any
state in the nation. Many small businesses are unable to afford insurance for
their employees or have to pass more and more of the costs onto them, and more
and more families have to make incredibly hard financial decisions about health
insurance coverage. These families, small businesses, and our state's economy
simply can't afford these drastic rate increases. Reports such as this further
underscore the urgent need to reform the insurance system in this country.

On behalf of your beneficiaries in New Hampshire, I ask
that you provide me with justification for this increase in premiums at a time
when so many families are struggling. I have also contacted Senator Harkin,
Chairman of the Senate Health, Education, Labor and Pensions Committee asking
that the Committee hold a congressional investigation on these reported rate
increases.